Area
Malaysia
Commodity Group
Biofuels
Commodity
Biodiesel
Date
01/07/2020
Policy Category
Trade
Policy Instrument
Trade disputes
Description
Formally request WTO dispute consultations with the European Union regarding certain measures the bloc adopted in the renewable energy sector in particular the classification of palm oil as a biofuel feedstock with high environmental footprint.
Notes
MALAYSIA / EUROPEAN UNION trade dispute (EU renewable energy policy): Reversing its earlier stance on the matter, the Malaysian Government announced that it would formally request WTO dispute consultations with the European Union regarding measures adopted by the EU and its Member States in the renewable energy sector notably the classification of palm oil as a biofuel feedstock with high indirect land use change (ILUC)-risk (see MPPU Mar.19 & Mar.20). The Malaysian Government views the EUs policy as a discriminatory action that restricts free trade practices, while lacking transparency and scientific credibility and disregarding Malaysias sustainability efforts. Malaysia would thus embrace Indonesias position and act as third party in the WTO case filed by Indonesia in December 2019 (see MPPU Jan.20).
